## Important points about the classic model, Macroeconomics

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Q. Important points about the classic model?

The most important points about the classic model are as following:

• Monetary and fiscal policy can't affect the GDP or unemployment in classical model.
• In the classical model can no nominal variables affect a real variable. Price level that is a nominal variable, for illustration, does not affect consumption, which is a real variable. It is called classic dichotomy.

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#### Relation between nominal and real interest rate, Q. Relation between nomina...

Q. Relation between nominal and real interest rate? Relation between nominal interest rate, real interest rate and inflation  If we signify the nominal interest rate by R

#### Opportunity cost, Habelers theory of opportuniyu cost

Habelers theory of opportuniyu cost

#### GDP, NATIONAL INCOME STATISTICS

NATIONAL INCOME STATISTICS

#### According to bowen leamer and sveikauskas, According to Bowen, Leamer, and ...

According to Bowen, Leamer, and Sveikauskas, which of the following is true? a. A nation indirectly exports its most abundant factors of production. b. A nation indirectly im

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Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. What impact do you suppose farm subsidies are likely to have on

#### Same Basket of Goods, assume the cost of a market basket in 2008 is 1717.0....

assume the cost of a market basket in 2008 is 1717.0. Calculate the cost of the same basket of goods and services in 2007. Price index in 2008 was 100 and price index in 2007 was

#### Mec, Lucas’ point of view, what are the limitations of the Keynesian model?...

Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?

#### For high school graduates increase the wage, Arrow up or down: An increase ...

Arrow up or down: An increase in the wage for high school graduates __________ the opportunity cost of college. A) arrow up B) Arrow down